27 January 2011
Ahead of today’s judicial review the Financial Services Consumer Panel has condemned the actions of many high street banks for failing to resolve consumer complaints over payment protection insurance (PPI) claims.
The Consumer Panel is concerned that financial institutions are using litigation as an excuse to apply a blanket suspension on processing PPI cases leaving many consumers having to wait even longer for compensation.
Adam Phillips, Chair of the Financial Services Consumer Panel said:
"The Financial Ombudsman has identified tens of thousands of cases of mis-selling. This litigation should not be an excuse for banks to apply a blanket ban on processing claims.
Banks must continue to deal with PPI cases on their merits and not try to pass the buck to the Financial Ombudsman. This results in further delay with the cost of redress falling on the industry as a whole. We look forward to the FSA taking tough enforcement action against institutions that apply blanket bans.
Banks should hold up their hands and admit their mistakes. It is time for the industry to stop hiding behind expensive lawyers, leaving consumers to wait years for the redress they deserve.”
Notes to editors
- The Consumer Panel does not accept the BBA’s contention that the FSA requiring the re-examination of PPI cases amounts to retrospective action by the FSA. Firms have always had a duty to keep the FSA’s principle of treating customers fairly in mind.
The Consumer Panel has previously commented on PPI: Christmas can’t come too early for PPI consumers 10th August 2010 and FSA right to launch temporary safeguard on PPI complaints 28th May 2010
The Consumer Panel is a statutory body under the Financial Services and Markets Act 2000 and was initially established by the Financial Services Authority in December 1998. The Panel advises the FSA Board on the interests and concerns of consumers and reports on the FSA’s performance in meeting its objectives.
The emphasis of the Panel’s work is on activities that are regulated by the FSA, although it may also look at the impact on consumers of activities outside but related to the FSA’s remit.
There are currently fourteen members of the Panel as listed below. Panel members are appointed for a three year term which can be renewed once (For further information on individual members, see Who is on the panel)